Takeda Pharmaceutical Co. Ltd. and Wave Life Sciences Ltd. are partnering to advance therapies for central nervous system disorders.
Under the global strategic collaboration, the companies will jointly develop and commercialize nucleic acid treatments for Huntington's disease; amyotrophic lateral sclerosis, or ALS; frontotemporal dementia; and spinocerebellar ataxia type 3.
Takeda will participate in the development and commercialization of Wave's Huntington drugs, WVE-120101 and WVE-120102, which are undergoing phase 1b/2a clinical trials; WVE-3972-01, which is expected to be evaluated for ALS and dementia treatment in the fourth quarter; and in a program targeting the ATXN3 gene for treating spinocerebellar ataxia type 3.
Takeda will also have the right to license multiple preclinical programs targeting central nervous system disorders, including Alzheimer's disease and Parkinson's disease. Wave will continue to independently advance its activities in neuromuscular diseases, including its lead clinical program for Duchene muscular dystrophy treatment.
Takeda will make an initial payment of $110 million to Wave and purchase $60 million of Wave's ordinary shares at $54.70 apiece. Takeda will also fund at least $60 million of Wave research over a four-year period to advance multiple preclinical targets selected by and licensed to Takeda.
Takeda and Wave will equally divide global costs and potential profits, with Wave eligible to receive development and commercial milestone payments of more than $2 billion in cash. Wave could also receive tiered high single-digit to mid-teen royalty payments on global commercial sales of each licensed program.
The collaboration is subject to closing conditions, including the requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976.